India must align regulatory framework with Europe, says L'Oreal chairman
Speaking at the recent India-France Business summit, the head of the global beauty giant stated that legal stability between the two countries was essential if medium and small enterprises are to flourish.
“The authorities have to focus on regulatory convergence to bring the Indian regulations closer to letter and spirit of European Union regulations,” he said, according to the Hindustan Times.
This is not a pressing issue for large multinationals, such as L’Oreal, but more crucial for smaller enterprises, Armand stated. “Big corporations are Indian in India and European in Europe, but the same is not possible for MSMEs.”
France and India
The comments from the industry leader came as part of a discussion group during the wider India-France Business Summit, at which President Francois Hollande pledged an upcoming investment of a further $6 billion in India every year, across various industries.
Armand believes that the potential collaboration and trade between the two countries will be underpinned by regulatory alignment.
For example, the L’Oreal chairman is keen for the incoming Goods and Services Tax (GST) to come into play in India: according to the Hindustan Times, he believes it that it could be a ‘game-changing reform’.
Rise of the global consumer
Meeting a standard level of regulation is becoming an increasingly important focus across industries, as ‘the global consumer’ continues to emerge. Nowhere is this more crucial than in cosmetics regulation.
Thanks to e-commerce, consumers are increasingly shopping across national boundaries, and expecting to receive products of comparable quality and safety standards, regardless of the country of origin.
Speaking recently to CosmeticsDesign, the head of the Canadian Cosmetics Toiletry and Fragrance Association (CCTFA) explained this emerging consumer mentality: “If there’s one thing that’s come out of the modern integrated world, it’s that consumers everywhere are expecting that when they buy products they will be safe, regulated products.”